Is the UK Public Sector Falling Behind in the AI and CX Race?

With 59% of public sector leaders saying AI will be the most transformational factor in contact centres by 2030, the research shows that most organisations are still early in their AI journey. 

You might wonder why, with all the technology around us, some public services still feel slow, frustrating, or disconnected. 

The truth is, the UK public sector is at a crossroads. It’s under pressure to embrace cutting-edge AI, improve remote working, and boost security, all while juggling tight budgets and rising expectations from citizens and stakeholders alike. But are they keeping up?

New research from Cavell Group and 8×8, Inc. reveals that many organisations across local government, housing, healthcare, and education are struggling to keep pace. The 2025 UK Public Sector CX Report shines a spotlight on big gaps in digital maturity, strategy, and frontline service capabilities. 

It highlights not only the challenges but also the crucial capabilities needed to transform citizen engagement—and who will thrive or fall behind in this next wave of change.

ALSO READ: Brand Identity is The Ultimate Marketing Message

Jamie Snaddon, EMEA Managing Director at 8×8, said, “More than 80% of respondents are currently changing or intending to change their contact centre provider in the next two years. That’s a huge opportunity to reshape how public services connect with citizens — but the clock is ticking.”

Common Pain Points in the UK Public Sector

The report uncovers some consistent themes affecting all sectors surveyed:

• Citizen Communication Habits Remain Omnichannel: Despite digital advances, email (74%), phone (68%), and face-to-face (66%) remain the top contact channels. Social media (52%) and live chat portals (45%) are gaining traction.
• Platform Sprawl: 31% of all organisations said their biggest internal communication challenge is that staff are using multiple, disconnected platforms. Integrated, all-in-one solutions remain the exception rather than the norm.
• AI and Data Integration Pressures: 47% expect policies to encourage more AI usage within three years. Meanwhile, 74% have been tasked with increasing integration with other government bodies by 2030.
• Security and Compliance Focus: 33% said AI has forced an increased focus on data protection.
• Metric Evolution: Organisations are rethinking success, moving beyond traditional metrics to more outcome-based, real-time analytics by 2030.

Operational challenges remain, too. Long wait times, repetitive customer explanations, poor call quality, and lack of data and training tools all frustrate public service delivery.

“Public sector organisations are telling us they’re at a critical turning point,” said Joe McStravick, Vice President, EMEA Sales at 8×8, Inc. “There’s a clear appetite to improve citizen services as expectations around AI, data, and omnichannel engagement delivery increase. But for many, delivery of the tools and training on their use is not keeping pace – and that’s often down to budgets.”

ALSO READ: Word-of-Mouth is Back, Now Digitally

Security of Customer Data Remains A Major Focus

Many public organisations still rely on consumer messaging apps to stay in touch with service users — a quick fix that often raises security and privacy concerns.

Finbarr Begley, Senior Analyst at Cavell, said, “While there is no shortage of ambition, the reality is that fragmentation, outdated technology, and security concerns are still widespread. The issue is budget, which means the path forward will demand strategic focus, better vendor partnerships, and a renewed investment in people and training. 

“With the right platforms and policies, public sector organisations can not only meet rising expectations – they can exceed them, creating smarter, faster, and fairer services.”

Implications For the Future of CX in the Public Sector

With 59% of public sector leaders saying AI will be the most transformational factor in contact centres by 2030, the research shows that most organisations are still early in their AI journey. While there is a focus on improving call routing, training, proactive citizen engagement, and self-service, many lack the infrastructure or insights to scale effectively. Equally, concerns over security, cloud transition risks, and regulatory obligations influence buying decisions.

The most important vendor selection criteria cited across all sectors include product functionality, brand reputation, and expertise in compliance and integration, with the mean average for changing contact centre providers taking one year and three months.

“These challenges speak to why unified CX matters more than ever. Public service teams want to deliver better outcomes, but fragmented systems and inconsistent citizen experiences hold them back,” added Jamie Snaddon, EMEA Managing Director at 8×8, Inc.

A single secure, AI-powered CX platform can give them the data, insights, and flexibility they need – whether that’s streamlining calls, improving accessibility, or helping mobile teams stay connected in the field.”

ALSO READ: To Drive ROI, CX Leaders Must Move Beyond Vanity Metrics